The Japanese yen strengthened against the US dollar and Bitcoin after U.S. Treasury Secretary Scott Bessent commented on Japan’s inflation problem and its potential need for rate hikes. Bessent expressed concern over Japan’s lagged response to rising prices, leading to a weaker USD/JPY exchange rate and gains in Asian currencies. Despite his hawkish view, Bank of Japan (BOJ) Governor Kazuo Ueda remains cautious, arguing that core inflation remains below the 2% target even with headline inflation nearing 3%. This contrasts with market expectations of potential BOJ interest rate hikes. Analysts attribute Japan’s gradual rate increases to a weak yen and rising import costs, which have fueled inflation. The BOJ will review rates in September and October, triggering significant market attention. Meanwhile, the U.S. dollar is experiencing a decline as traders anticipate Fed rate cuts at the upcoming meeting on September 17th. Bitcoin has also been rallying to new highs, exceeding $124,000, fueled by optimism about the Fed’s potential easing of monetary policy and increased institutional investment.